Most Popular

Financing Micro-entrepreneurship in Online Crowdfunding Markets: Local Preference versus Information Frictions

Jian Ni, Yi Xin, Sep 30, 2020

Crowdfunding has become an important financing alternative for micro-entrepreneurship. We study to what extent bias toward local entrepreneurs is prevalent in crowdfunding markets, determine the main driving forces for such bias, and examine how crowdfunding platforms and policymakers can leverage these forces to stimulate micro-entrepreneurship. Even though online crowdfunding platforms are designed to overcome geographic barriers, we find evidence of strong local bias induced by both informational frictions and local preference, with the former being more important.

Clean Air as an Experience Good in Urban China

Matthew E. Kahn, Weizeng Sun, Siqi Zheng, Oct 14, 2020

If clean air is a valued experience good, then the short-term reduction in pollution in the spring of 2020 due to the COVID-19 shutdown could have persistent medium-term effects on reducing urban pollution levels as cities adopt new “blue sky” regulations to maintain recent pollution progress. Using data from 144 cities in China, we find that the largest experience good effect should take place for cities featuring a high pollution-sensitive population and where air quality has sharply improved during the pandemic. The residents of these cities have increased online discussions focused on environmental protection, and local officials are incorporating “green” industrial subsidies into post-COVID stimulus policies.